County tourism seeks hotel tax audit

Daveen Rae Kurutz

Wednesday

Jan 30, 2019 at 5:22 PMJan 30, 2019 at 6:08 PM

Beaver County tourism director Tim Ishman will recommend a plan to audit the county's hotel tax collection after a Times investigation revealed that more than a dozen hotels aren't in complete compliance.

BEAVER — Pay now, benefit later.

At least that's what Beaver County tourism director Tim Ishman hopes will happen.

Ishman wants to use some of the money collected by the county's 5 percent hotel tax to pay an outside auditor to review hotel tax records submitted to the treasurer's office. Ishman said he anticipates that between three to five hotels will be audited, the first such audit since 2008.

The result, Ishman hopes, will be better compliance and extra money in the county coffers.

"The auditor would go in and determine compliance with our ordinance and then recommend which hotels should be looked at," Ishman said. "I don't expect that all 14 will be audited, just three, four or five."

A Times investigation found that 14 of the 20 hotels that submitted tax exception paperwork to the county were missing required information. Under state law, patrons to a hotel can be exempted from paying the 5 percent hotel tax for a variety of reasons, ranging from being affiliated with a nonprofit organization to staying at the hotel for more than 30 consecutive days.

Ishman solicited bids from five auditors, he told the county commissioners Wednesday. One did not respond, one wasn't interested and a third doesn't have a background in auditing hotel tax records. The contractor who conducts Butler County's audit and another auditor both gave hourly rates for their work.

Commissioners Chairman Daniel Camp said he would support the audit.

"I would go with your recommendation," Camp said.

Ishman said the lower bid is his top choice.

"He has a familiarity with the process, there's an education he would provide to facilities and the pricing is good," Ishman said.

If the commissioners approve the request, the tourism department would spend $65 an hour for the auditing process.

Ishman also expressed frustration at one hotel, the Park Inn in Big Beaver, that has not submitted paperwork since March. Solicitor Garen Fedeles said the law office sent a letter to the company in the fall regarding its lack of compliance.

Officials in the treasurer's office said hotel officials notified the office that it was closing in March, but Ishman said the property was purchased by another hotel chain recently.

Fedeles said the law office will reach out to the new owners to make sure payment is up to date.

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